STR: Europe, Central/South America, Middle East and Africa hotel performance for August

Compared with August 2015, Europe reported an occupancy decrease of 1.5% to 75.8%. Average daily rate (ADR) was flat at EUR115.94. Revenue per available room (RevPAR) dipped 1.5% to EUR87.88. Compared with August 2015, the Central/South America region reported nearly flat occupancy (-0.4% to 70.1%). Average daily rate (ADR), however, increased 3.3% to US$125.13, and revenue per available room (RevPAR) grew 2.9% to US$87.69.

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LONDON – Hotels in Europe recorded mostly negative results in the three key performance metrics when reported in euro constant currency, according to August 2016 data from STR.

Compared with August 2015, Europe reported an occupancy decrease of 1.5% to 75.8%. Average daily rate (ADR) was flat at EUR115.94. Revenue per available room (RevPAR) dipped 1.5% to EUR87.88.

Performance of featured countries for August 2016 (local currency, year-over-year comparisons):
Israel reported decreases across the three metrics: occupancy (-9.5% to 69.9%), ADR (-3.1% to ILS908.84) and RevPAR (-12.2% to ILS635.64). August performance in the country has fluctuated significantly over the past several years due to various political unrest issues, according to STR analysts.

Russia posted a 6.7% increase in occupancy to 70.6% as well as double-digit growth in ADR (+16.5% to RUB4,824.38) and RevPAR (+24.3% to RUB3,408.06). The absolute occupancy level was the highest in the country since September 2011. STR analysts cite a boost in domestic travel, as a result of a weakened Russian Ruble, as a reason behind the performance.

Malta recorded increases in each of the three metrics. Occupancy in the country increased 0.9% to 92.8%; ADR was up 4.3% to EUR155.74; and RevPAR grew 5.3% to EUR144.54. Being a particularly seasonal market, Malta has seen fairly strong performance since May, and hoteliers capitalized on high demand with higher rates throughout the summer months. The August absolute RevPAR level was the highest for any month on record in Malta.

Performance of featured markets for August 2016 (local currency, year-over-year comparisons):
Barcelona, Spain, experienced a 0.8% decrease in occupancy to 86.8%, but a 10.2% rise in ADR to EUR144.58 pushed RevPAR up 9.4% to EUR125.54. With fairly flat occupancy performances, ADR has been the driver of RevPAR in the market since the beginning of the year. Hoteliers maintained their focus on rate in August, leading to the market’s highest absolute RevPAR level for any August on record.

Istanbul, Turkey, reported significant declines across the board: occupancy (-33.6% to 50.4%), ADR (-31.8% to TRY288.06) and RevPAR (-54.7% to TRY145.13). According to STR analysts, terrorism in the country along with the July coup d’etat attempt all played a role in the performance declines. At the same time, supply has grown 6.9% year to date in Istanbul, compounding the issues for the local hotel industry.

Milan, Italy, reported double-digit decreases in each metric. Occupancy dropped 23.0% to 48.9%; ADR was down 11.3% to EUR112.32; and RevPAR fell 31.6% to EUR54.88. The significant performance declines were due to comparisons with the Expo Milano months from 2015. Aside from last year, August is typically a slower month for Milan.

Central/South America hotel performance for August 2016

Hotels in the Central/South America region recorded mostly positive results in the three key performance metrics when reported in U.S. dollar constant currency, according to August 2016 data from STR.

Compared with August 2015, the Central/South America region reported nearly flat occupancy (-0.4% to 70.1%). Average daily rate (ADR), however, increased 3.3% to US$125.13, and revenue per available room (RevPAR) grew 2.9% to US$87.69.

Performance of featured countries for August 2016 (local currency, year-over-year comparisons):
Chile experienced a 3.9% increase in occupancy to 65.0%, but an 8.4% drop in ADR to CLP75,177.74 dragged RevPAR down 4.8% to CLP48,879.41. STR analysts cite the ADR comparison base from August 2015, Chile’s highest on record for the month, as the reason behind the decline in the metric. However, the number of rooms sold in the country eclipsed 660,000 for the first August on record, thanks in part to strong tourism. According to the Chilean Undersecretary of Tourism, 5.6 million international visitors are expected to enter Chile for total-year 2016 – which would top last year’s record-high 4.4 million visitors.

Costa Rica posted increases across the key performance metrics. Occupancy in the country rose 9.4% to 63.8%; ADR was up 6.8% to CRC66,406.70; and RevPAR increased 16.8% to CRC42,347.92. Costa Rica has reported 29 consecutive months of RevPAR growth in a 12-month moving average. According to the Costa Rican Tourism Institute, the number of visitor arrivals to the country increased 12.3% during the first half of 2016, and visitor spending reached a record level for the first six months of the year.

El Salvador reported increases in each of the three metrics: occupancy (+7.2% to 67.8%), ADR (+5.3% to US$97.98) and RevPAR (+12.8% to US$66.39). STR analysts note that supply in El Salvador remained flat through the first eight months of 2016 after decreasing slightly (-0.4%) for total-year 2015. In addition, safety in the country is improving with a 13.3% decrease in homicides through mid-September, according to the Policia Nacional Civil.

Performance of featured markets for August 2016 (local currency, year-over-year comparisons):
Rio de Janeiro, Brazil, host to the Summer Olympics, reported substantial increases across the board: occupancy (+26.6% to 76.0%), ADR (+199.2% to BRL1,250.27) and RevPAR (+278.6% to BRL949.85). STR analysts highlight the spike in ADR as the driver of RevPAR. According to officials, the Olympics attracted 1.17 million tourists who spent an average of BRL424 per day.

Quito, Ecuador, saw double-digit declines in occupancy (-20.0% to 46.1%) and RevPAR (-17.1% to US$48.35). ADR was up 3.6% to US$104.93. The market’s occupancy has dropped by double figures each month this year with year-to-date supply growth (+5.3%) significantly outweighing demand (-16.3%). According to STR analysts, economic issues stemming from lower oil prices have hurt hotel performance in Ecuador, and earthquake activity has only worsened matters.

Bogota, Colombia, recorded growth in occupancy (+8.0% to 60.5%) and RevPAR (+6.0% to COP176,254.77). ADR in the market was down 1.9% to COP291,462.58. Bogota’s RevPAR has grown in year-over-year comparisons each month in 2016.

Middle East and Africa hotel performance for August 2016

Hotels in the Middle East reported mixed August 2016 results, while hotels in Africa posted mostly flat results in the three key performance metrics when reported in U.S. dollar constant currency, according to data from STR.

Compared with August 2015, the Middle East recorded a 2.3% rise in occupancy to 65.2%. However, average daily rate (ADR) was down 5.4% to US$141.89, and revenue per available room (RevPAR) fell 3.3% to US$92.54.

Africa experienced a 0.8% increase in occupancy to 62.9%, flat ADR at US$126.60 and a 0.9% lift in RevPAR to US$79.60.

Performance of featured countries for August 2016 (local currency, year-over-year comparisons):
Kenya recorded a 9.3% increase in occupancy to 60.3% as well as double-digit growth in ADR (+11.5% to KES15,969.23) and RevPAR (+21.8% to KES9,631.80). The absolute ADR level was the highest on record for Kenya, and the absolute RevPAR level was the highest for the country since September 2012.

Oman saw a 3.0% rise in occupancy to 49.2%, but a 10.0% drop in ADR to OMR57.65 dragged RevPAR down 7.3% to OMR28.34. STR analysts point to low oil prices as well as a third straight month of double-digit supply growth as a reason behind the overall decline. Oman has reported a year-over-year decrease in ADR for 20 consecutive months.

The United Arab Emirates reported an increase in occupancy (+2.1% to 73.4%) but declines in ADR (-8.8% to AED463.51) and RevPAR (-6.8% to AED339.98). Demand (+5.1% year to date) has remained well ahead of last year’s pace, but supply (+5.2% YTD) continues to pressure rate in the region. ADR in the United Arab Emirates has decreased 20 consecutive months in year-over-year comparisons.

Performance of featured markets for August 2016 (local currency, year-over-year comparisons):
Cape Town, South Africa, posted increases across the key performance metrics: occupancy (+5.3% to 63.1%), ADR (+15.8% to ZAR1,319.05) and RevPAR (+22.0% to ZAR831.93). Occupancy in the market has grown 12 straight months in year-over-year comparisons, and ADR has grown 59 consecutive months. In addition to the devaluation of the South African Rand, hotels in the market have benefitted from a lack of supply growth (-0.8% YTD).

Doha, Qatar, reported double-digit decreases in each of the metrics. Occupancy fell 11.2% to 54.4%; ADR was down 10.6% to QAR353.71; and RevPAR dropped 20.6% to QAR192.58. Significant supply growth (+12.1% YTD) coupled with a drop in demand (-7.5% YTD) and the oil crisis have led to 11 consecutive months of double-digit RevPAR decreases in Doha.

Muscat, Oman, reported decreases in each of the three metrics: occupancy (-6.3% to 46.4%), ADR (-9.6% to OMR53.78) and RevPAR (-15.3% to OMR24.94). Numbers in Muscat mirror that of the entire country with four consecutive months of supply growth at 12.4% greatly pressuring performance in the market.(TDNEWS)

 

Published On: Time : 4:43:16

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